Can you request another appraisal on a ReFi? (Charlotte, Huntersville: cul-de-sac, short sales)
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So, I am in the process of refinancing my house and the appraiser came yesterday. All the guy did was measure the house and then check out an appraisal I had from 2 years ago and basically call it into question.
I'm afraid his report is going to leave me short of the goal I have for the value. He all but said it outright yesterday. He asked me what I hoped it would appraise for and I told him a value that was $31k less than the 2-yrs ago appraisal. To that he said, "good luck."
Now, maybe he goes back and pulls comps that get me the value I need. But if he doesn't, do I have the right to request another appraisal from my lender (Wachovia)?
It sounds like if he does his job correctly then it will not appraise for the value you are hoping/looking for... I would think the appraiser is going to look at similar homes/resales. Do you expect a different appraiser will do something else?
To answer your question: NO. The appraiser is supposed to check the most recent (in the last 3-6 months) and LOWEST sales within a 5 mile radius of your house, comparing square footage, room count, etc. The appraisal review team that will look at the appraisal at your lender will ensure that he has done that. If there are foreclosures, short sales, etc; your value is sunk. Your "goal" for value is not only insignificant but probably dead wrong in this market.
You did not mention where you were located. I am a mortgage underwriter by trade. I recently saw an appraisal in Huntersville in what would be considered a "nice" neighbourhood. The property was appraised for $608k in 11/2007 through a regular full appraisal, $518k in 10/2008 through an electronic appraisal and just a week ago with another regular appraisal $451900.00. Things are not pretty out there.
If you live in a 'typical' subd, any appraiser should be within 5% +/- of the same value. There really isn't any mystery to it, you report the most recent sales and a couple listings. And in today's market, the most recent sales are rarely the highest anymore.
Most large banks have their own approved appraisers either on staff or hired out through appraisal management companies - so I doubt you can find your own appraiser and have a large bank accept it.
The only thing I might disagree with cubs about is that 1 or 2 pre-foreclosures/short sales in a large subd shouldn't affect the value on a typical owner occupied home. If standard arms length transactions are still the vast majority of sales, then that's the market and that's what should be reported. Now when you get into subdivisions where foreclosures are defining the market, then sorry, that's what your house is competing with.
As I figured, the appraisal came back at exactly the price I paid for the home in August. I was hoping for $380, but it appraised for $335, despite appraising for $411 as stated earlier. I have full confidence that the appraiser assigned a value equal to what I paid for the house so as not to raise any eyebrows. He all but said that was what he was going to do.
The problem is I live on a cul-de-sac street of all different custom homes, none of which have sold since August 2007. I live in Area 4, Sub-Area 5 (Providence Plantation area). My house was sold to me by the guy who built it so his "cost" for the house would be much lower than had he not built it himself.
I'm positive that I got a great deal on my house because the market was bad and because the guy built the house, his desired margin was much easier to attain at a lower price than most people selling a house.
I've tried pulling some comps and there just aren't any out there, even as far back as January 08. I just have a really hard time believing that the Charlotte market for a custom home has gone down 20% in 2 years, even in this market.
I am going to try calling the company that did the appraisal before, and possibly switch mortgage companies. At this point, I'm down $400 but I think it's worth trying some other options.
To answer your question: NO. The appraiser is supposed to check the most recent (in the last 3-6 months) and LOWEST sales within a 5 mile radius of your house, comparing square footage, room count, etc. The appraisal review team that will look at the appraisal at your lender will ensure that he has done that. If there are foreclosures, short sales, etc; your value is sunk. Your "goal" for value is not only insignificant but probably dead wrong in this market.
You did not mention where you were located. I am a mortgage underwriter by trade. I recently saw an appraisal in Huntersville in what would be considered a "nice" neighbourhood. The property was appraised for $608k in 11/2007 through a regular full appraisal, $518k in 10/2008 through an electronic appraisal and just a week ago with another regular appraisal $451900.00. Things are not pretty out there.
I know things aren't pretty out there, but if a guy is simply going to measure square footage and compare my house to something in a track neighborhood then isn't that a pretty flawed system? My house is only 2500 square feet but it's entirely custom built with high-end amenities and trim. Does an appraiser measure square footage of a lake-front home in Cornelius and assign a value based only on square footage? It just doesn't make sense.
It sounds like if he does his job correctly then it will not appraise for the value you are hoping/looking for... I would think the appraiser is going to look at similar homes/resales. Do you expect a different appraiser will do something else?
What I expect of an appraisal is for them to tell me and the bank the true value of my home. You cannot tell me the true value by measuring square footage and pulling comps of some track homes within 5 miles of my house.
I know things aren't pretty out there, but if a guy is simply going to measure square footage and compare my house to something in a track neighborhood then isn't that a pretty flawed system? My house is only 2500 square feet but it's entirely custom built with high-end amenities and trim. Does an appraiser measure square footage of a lake-front home in Cornelius and assign a value based only on square footage? It just doesn't make sense.
Sorry, unless there are "custom" homes that are identical to yours that have sold in the last 3 months, you will get comps based on square footage and room count.
Yes, an appraiser uses the example in Cornelius the same way...UNLESS THERE ARE COMPS TO SUPPORT A HIGHER VALUE.
The only time "custom" stuff adds value is when there are others like it also selling. Otherwise, it is just extra....
Same thing goes for basements & pools. The only time they add value is when there are other homes like them selling at a higher price.
sorry, dude. You may spend $400 again, but not get a better value...possibly a lower one.
Last edited by chicagocubs; 01-04-2009 at 02:57 PM..
Location: Some got six month some got one solid. But me and my buddies all got lifetime here
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Quote:
Originally Posted by chicagocubs
I recently saw an appraisal in Huntersville in what would be considered a "nice" neighbourhood. The property was appraised for $608k in 11/2007 through a regular full appraisal, $518k in 10/2008 through an electronic appraisal and just a week ago with another regular appraisal $451900.00.
Was the most recent appraisal a full? If that's the case then I'll bet the owners must be po'd since you're bound to the most recent appraisal.
Yes, it was. The homeowners were probably really ticked off because they thought the $518k was too low.
Thankfully, I have not had to speak with them personally.
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